Councilman's Roles In Shelter Project Raises Questions

November 18, 1990|By DAVID LERMAN Staff Writer

HAMPTON — City Councilman Baxter E. Simmons served as a subcontractor for the renovation of a shelter for battered women, while voting for federal money to be funneled to the project through the city, according to documents obtained from city officials under the Virginia Freedom of Information Act.

As a councilman and a member of the city's Redevelopment and Housing Authority, Simmons voted at least four times this year in favor of allocating federal money to the shelter, located on Chapel Street near downtown, according to official city records. For the past 10 years, Simmons has been a board member of the Virginia Peninsula Council on Domestic Violence, which operates the women's shelter.

"It certainly is a situation that raises the question of an apparent conflict of interest," said Irene Deneau, acting deputy manager for the U.S. Department of Housing and Urban Development's Richmond field office. HUD has supplied $175,000 in grants and loans, approved by the City Council and Housing Authority, to renovate the shelter.

Commonwealth's Attorney Christopher W. Hutton would be responsible for prosecuting any violation of state law. "I'm aware of the circumstances," he said, "and will be investigating them to determine whether or not there was a conflict of interest under state law."

In an Oct. 26 letter to City Manager Robert J. O'Neill Jr., which was prompted by a Daily Press inquiry to HUD about Simmons' involvement in the renovation project, HUD Field Manager Mary Ann E.G. Wilson said a City Council member is not allowed to serve on a board that receives federal block grant money. "Such dual service is prohibited by the Conflict of Interest provisions" the letter said.

Deneau said of the dual service, "The potential for abuse is there whenever someone wears two hats, but I don't know that there's been any exploitation of the situation."

Simmons, along with several other city officials on the domestic violence council, was advised of the potential for a conflict of interest in a June 15 memo from R. Matthew Kennell, the city's block grant program manager.

Simmons defended his role in assisting the shelter, saying, "I saw no conflict of interest whatsoever. If there is one, I'm certainly sorry for it and will do whatever HUD recommends."

Neither Deneau nor Hutton said Simmons had violated either state or federal laws.

Simmons said that if he is re quired to step down from the shelter board, he may have to re-evaluate whether to seek re-election to the council in 1992. "I'm going to have to take a serious look at whether it's more important for me to serve on City Council in 1992 or on the community boards," he said. "That's going to be a very difficult decision for me."

HUD regulations state in part that any official with "decision making" authority over the use of federal block grant funds may not "obtain a personal or financial interest or benefit" from a project, or "have an interest in any contract, subcontract or agreement" concerning that project, "either for themselves or those with whom they have family or business ties, during their tenure or for one year thereafter."

City documents twice list Simmons, who operates the Rugland carpet store in Newport News, as a subcontractor for the renovation work, once for "flooring" and once for "tile or marble and setting."

Although no prices are included, a separate document, which breaks down the cost of the $262,005 renovation project, includes "carpet" for $13,800.

Simmons produced invoices Friday that he said showed he was paid $18,069 for the carpet work. He said the invoices also show he ended up losing $487. He said he had intended to do the job at cost and donate whatever money was left over to the shelter operation.

Simmons said the $13,800 was the original cost estimate for the project. Additional work in an adjacent education building and a better quality of carpet pushed the cost up to $18,069, he said.

He said the carpeting work was put out for competitive bids and that his company was the lowest bidder because he agreed to do the work at cost.

"I had no monetary interest in the job because I was performing the job at or below cost," he said. "There is no profit."

He also said he did not believe there was any conflict because he was not working directly for a government agency, or directly for the shelter. Instead, he was hired by the general contractor for the shelter project, Jericho Construction Co. of Grafton, according to documents.

Simmons said he would have had a conflict if the shelter were its own general contractor and did not hire Jericho. At that point, he said, he would have been a contractor to the shelter, instead of being a subcontractor to Jericho.

Hutton declined to comment on whether such a distinction is recognized under state law. Federal HUD regulations specifically prohibit officials from having an interest in "any contract, subcontract or agreement."